Arguments Against Social Responsibility

Some people however including the famous economist Milton Friedman argu that widening the interpretation of social responsibility will undermine the U.S. economy by detecting from the basic mission of business to earn profits for owners. For example money that, Chevron or general electric contributes to social causes or charities is money that could otherwise be distributed to owners as a dividend.

Another objection to deepening the social responsibility of business points out that corporations already wield enormous power and that their activity in social programs gives them even more power. Still another argument against social responsibility focuses on the potential for conflicts Of interest. Suppose, for example, that one manager is in charge of deciding which local social program or charity will receive a large grant from her business. The local civic opera company (a not-for-profit organization that relies on contributions for its existence) might offer her front-row tickets for the upcoming season in exchange for her support. If opera is her favorite form of music, she might be tempted to direct the money toward the local company, when it might be actually be needed more in other areas.

            Finally, critics argue that organizations lack the expertise to understand how 1o assess and make decisions about worthy-social programs. How can a company truly know they ask which cause or program is most deserving of its support or how money might best be spent? For example, ExxonMobil makes substantial contributions to help save in Bengal tiger, an endangered species that happens also to serve as the firm's cooperate symbol. ExxonMobil gives most of the money to support breeding programs in zoos and to help educate people about the tiger. But conservationists criticize the firm and its activities, arguing that the money might be better spent instead on eliminating poaching, the illegal trade of tiger fur, and the destruction of the tiger’s natural habitat.